David Brown, Victory Capital Management

Crestview Partners and management acquire Victory Capital Management from KeyCorp

Private equity firm Crestview Partners has teamed up with employees of Victory Capital Management to acquire the firm for USD246m from KeyCorp.

Private equity firm Crestview Partners has teamed up with employees of Victory Capital Management to acquire the firm for USD246m from KeyCorp.

On completion of the transaction, Victory will be an independent firm with the senior management team, portfolio managers and other employees owning a significant amount of the outstanding equity. The transaction is expected to close in the third quarter.

As of 31 December 2012, Victory managed and advised approximately USD22.1bn in equity and fixed income assets on behalf of its institutional and individual investors. Under the new ownership structure, David Brown (pictured) and Christopher Ohmacht will continue to lead Victory and will be appointed to the company's new board of directors along with two representatives from Crestview and three independent directors.  Brown will become the chief executive officer, and Ohmacht will become president.

Victory will continue to operate under its present brand name and remain headquartered in Cleveland, Ohio with offices in New York, NY, Cincinnati, OH, Denver, CO and Tampa, FL.

Brown says: "We are pleased to partner with Crestview, a firm that is well known and respected for its asset management expertise and integrity.  This new ownership structure will preserve our successful multi-boutique operating model and provide an opportunity for real equity ownership to our employees that will align our interests with those of our clients, today and well into the future."

Richard DeMartini, a partner at Crestview, says: "We are very pleased to be partnering with the Victory team. Victory is an outstanding firm with excellent investment talent and distribution expertise. The company is very well managed, under the leadership of David Brown and Christopher Ohmacht.  Victory has a team of outstanding portfolio managers with a history of strong investment performance."

Victory will continue to operate with nine autonomous investment teams, each retaining authority for investment decision making while being supported by the broader Victory organisation for risk management, trading, research, sales, client service, compliance, technology and operations.  The individual chief investment officer and team that manage each portfolio will not experience any significant change in the resources received from Victory.
 

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